July 11, 2011 – Ducati aligns with GE Capital for floor plan financing
Ducati and GE Capital signed an agreement to provide the historic Bologna-based company and its dealer network with a pan-European “floor-plan” financing facility of up to €50 million ($71.3 million).
Under the terms of the agreement, GE Capital will finance Ducati’s motorcycles from the time they leave the factory until the sale to the end-customer, providing Ducati’s European dealership network with additional liquidity and extended payment terms.
“The partnership with GE Capital is part of our strategy to strengthen the financial and economic structure of the company and will help us achieve our ambitious future goals,” Ducati financial director Paolo Poma said. “The agreement is focused on Ducati’s European dealers, to help them generate more sales, supporting them with dedicated credit lines and enhanced payment terms for the Ducati motorbikes they have in stock.”
The agreement with Ducati marks an important step in GE Capital’s strategy to strengthen its Commercial Distribution Finance (CDF) unit in Europe and particularly in Italy, where the local CDF activities have been integrated within the GE Capital Interbanca banking group. With a multi-billion Euro portfolio, GE Capital’s CDF business unit is Europe’s leading provider of inventory and floor-plan finance. This integration will strengthen its presence in the Italian market, confirming the company’s intent of becoming a privileged financial partner for European manufacturers operating in Italy.
“We are proud to have been chosen by Ducati to support its dealer network across Europe, as this new partnership proves the commercial strength of our offer and confirms our commitment towards the motorcycle industry,” said Paolo Braghieri, CEO of GE Capital Italy. “This is the first programe originated in Italy since the integration with the GE Capital Interbanca business, and there could be no better endorsement for our renewed Italian organisation than having a partner of the calibre of Ducati.”
The new financing program, which will be progressively activated across Europe, will be immediately available to Ducati’s dealer network in the United Kingdom and to a number of Italian dealers.
A leading provider of inventory and floor-plan finance in Europe, GE Capital supports manufacturers in a wide range of industries, counting among its customers Jaguar-Land Rover, Piaggio Group and luxury motorboat manufacturer Fairline.
